Canada’s $500 million Netflix deal

The Canadian government and Netflix are talking business. Canadian Heritage Minister Melanie Joly first announced the deal on September 28th, but is continuing to discuss the details today. Joly explains her desire to keep Canadian policies up-to-date with how we currently consume media, which naturally ties into Netflix — the platform has allowed users to take their content anywhere, and watch at any time.

Netflix expressed their goal of investing in Canada in order to support Canadian work. Specifically, the company stated their plans on opening the very first Canadian production house (all previous have been located inside the United States). The partnership has left some confused when it comes to finances. Joly has stated that Netflix will pay income taxes in Canada (with no tax exemptions).

Interestingly enough, the production house has become a topic of misperception as of this moment. Canadian Media Producers Association’s spokesperson Reynolds Mastin clarified the production house announcement by mentioning that Netflix did not have to build an actual physical building. Instead, Netflix is required by the federal government to have an “incorporated presence” in Canada. In other words, it could just be a legal procedure on paper instead of an actual building. There is still no commitment on whether or not building is going to be part of this deal, but it is certainly not off the table.

While actual construction is still in the future, Canadians are discussing where Netflix should build the production company – of course, Vancouver has become a rising star in the area of film making. It may be a natural fit to create a production studio in our city. Many Hollywood productions have chosen to shoot in our city and thus positively contributing to our economy.

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